Who Is Required to File IRS Form 720?

• Under the filing rules of Form 720, any business engaged in or selling a product (good or service) that is subject to excise tax must file quarterly and report to the IRS all its excise tax liabilities.

• Form 720 excise tax filing applies to every manufacturer, retailer, producer or importer that is liable for collecting or paying federal excise taxes on specific goods or services.

• Business types that report excise taxes on Form 720 include fuels, environmental taxes, communications, air transportation, vaccines, tires, archery equipment, indoor tanning, coal, heavy trucks, among others.

• Unless a final return has already been submitted, Form 720 must be filed by any entity liable for excise taxes for the current or any preceding quarter.

• Businesses have to file Form 720 by the last day of the month following each quarter. The tax category reporting should be done properly according to the IRS guidelines.

Manufacturing, importing or selling any goods and services subject to federal excise taxes requires an understanding of the Form 720 filing rules to avoid penalties and stay in compliance with the IRS. Form 720, also called the Quarterly Federal Excise Tax Return, is the regular form employed by excise tax–liable entities for reporting and paying federal excise taxes on a wide range of products.

The following guide will explain who has to file, tax categories included, quarterly deadlines, and critical compliance points that Form 720 excise tax businesses must address. It also discusses how Form 720 excise tax filing works and why quarterly reporting is required for any entity responsible for collecting or remitting excise taxes.

ALSO CHECK - Form 720 Due Date

Businesses Engaged in Taxable Goods and Services

Filing requirements for Form 720 cover companies that manufacture, sell, or import any of the excise-taxable products. Key categories include:

• Gasoline, diesel, kerosene and other fuels

• Air transportation services

• Passenger ship transport

• Indoor tanning services

• Tires and heavy vehicles

• Vaccines

• Fishing and archery equipment

• Coal

• Repurchase of corporate stock

If your operations involve any of the above, the IRS requires your business to complete Form 720 excise tax filing each quarter.

Manufacturers and Producers

Quarterly filing of returns is strictly required by the manufacturers and producers of the following goods, among many others:

Sport Fishing Equipment:

• Manufacturers or importers must pay a 10 percent excise tax on the sales price of rods, reels, tackle boxes and more (with caps on certain items).

Archery Equipment

• Bows, quivers, broadheads, and arrow shafts face an excise tax of 11%, or per unit, depending on the component.

Vaccines:

• Taxable vaccines, such as DPT, MMR and polio, are subject to excise taxes per dose.

Tires:

• Excise taxes are imposed based on the weight and type of taxable tire.

Heavy Trucks & Trailers:

• The federal rules are that trucks, trailers and tractors over 33,000 pounds are taxable.

Coal Production:

• Coal mined underground and on the surface is taxed per ton or by sales price.

Each one of these industries is a major part of Form 720 excise tax businesses and compliance is vital for the right reporting.

Importers of Taxable Goods

Importers must file Form 720 for any entries of excise-taxable goods into the United States. This may include:

• Imported heavy trucks or trailers

• Imported tires

• Imported archery and fishing equipment

• Imported petroleum products and chemical substances

Businesses need to ensure proper product classification for correct Form 720 tax filing. Without this, misreporting of tax categories can easily occur.

ALSO CHECK - Can Form 720 be Filed Annually ?

Retailers and Service Providers

Form 720 is filed by retailers selling any goods subject to a federal excise tax and by those that sell services that are subject to a federal excise tax. Select examples include the following:

• Indoor tanning service providers

• Retailers of heavy trucks or trailers

• Sellers of ozone-depleting chemicals

Anyone required to collect excise taxes on behalf of the IRS has to follow the filing rules of Form 720, which calls for quarterly returns.

Entities Responsible for Excise Tax Collection

According to the IRS, filing is required if:

• You are liable for excise taxes for this quarter, or

• You were liable in an earlier quarter and you have not filed a final return

This ensures continuity of responsibility for all Form 720 excise tax businesses, even though the tax liability may vary.

Excise Tax Categories in Form 720

Form 720 comprises numerous classes under Part I and Part II, which include:

• Environmental taxes

• Communications and air transportation taxes

• Fuel taxes

• Retail taxes

• Passenger taxes on ships

• Taxes on foreign insurance

• Manufacturers taxes

• Indoor tanning services

• Vaccination

• Fuel consumption on inland waterways

• Biodiesel

• Corporate stock buyback

Precise reporting among these categories forms the base of a compliant Form 720 excise tax filing.

Filing Frequency and Quarterly Due Dates 

Filing Frequency and Quarterly Due Dates Form 720 is a quarterly return, and the following are the due dates according to the Form 720 filing rules: 

• Q1 (Jan–Mar): Due April 30 

• Q2 (Apr–Jun): 31 July 

• Q3 (Jul–Sep): 31 October 

• Q4(Oct–Dec): January 31 

The preparation and submission of accurate Form 720 returns are required quarterly from Form 720 excise tax businesses based on a review of the taxable activity each business reported. Delinquent filings of these returns result in penalties and interest. 

Why Filing Online Makes Compliance Easier

Filing electronically is the fastest way to file your return timely and accurately. Authorized IRS e-file providers, like efile720, ease this process by reducing manual errors and ensuring a secure and compliant filing. 

If your operations include the selling of any goods, services or carrying out activities taxed under federal excise tax, timely filing out your Form 720 excise tax return is essential in keeping yourself compliant with the IRS. 

FAQs 

1. What are the basic Form 720 filing rules that every business must follow? 

Quarterly filing by businesses, reporting of all applicable excise taxes and accuracy regarding each tax category as listed by the IRS are required. 

2. Who is required to complete Form 720 excise tax filing? 

Any person that is a manufacturer, importer, retailer or other entity required to file and pay federal excise taxes must also file Form 720 quarterly. 

3. What businesses are classified as Form 720 excise tax businesses? 

It includes companies engaged in fuel, aviation, communications, indoor tanning, vaccines, tires, coal or archery and fishing equipment. 

4. When are Form 720 filing deadlines each year? 

The IRS requires filing on April 30, July 31, October 31, and January 31 for each respective quarter. 

5. Can businesses file Form 720 online?

Yes, using IRS-authorized providers like efile720 ensures online submissions are faster, more accurate, and compliant.